topic Re: Paying credit cards... in Credit Cards

Paying credit cards...

afbar1114 — Thu, 17 May 2012 21:38:18 GMT

So my new BoA statement came in yesterday and to my surprise I didn't pay any interest. Should I let a balance earn interest once in awhile? Or should I PIF before the next statement? And will PIF before the next statement/due date will I avoid interest?

Re: Paying credit cards...

2NE1 — Thu, 17 May 2012 21:47:06 GMT

wouldn't this depend on how high your interest rate is?

Re: Paying credit cards...

aussiesareforever — Thu, 17 May 2012 21:48:39 GMT

@appbar1114 wrote:
So my new BoA statement came in yesterday and to my surprise I didn't pay any interest. Should I let a balance earn interest once in awhile? Or should I PIF before the next statement? And will PIF before the next statement/due date will I avoid interest?

You should never have to pay interest. You can let a balance report but make sure the entire balance from the previous month has been paid off. You don't earn extra FICO points for paying interest.

Re: Paying credit cards...

afbar1114 — Thu, 17 May 2012 22:15:21 GMT

@aussiesareforever wrote:
@appbar1114 wrote:
So my new BoA statement came in yesterday and to my surprise I didn't pay any interest. Should I let a balance earn interest once in awhile? Or should I PIF before the next statement? And will PIF before the next statement/due date will I avoid interest?
You should never have to pay interest. You can let a balance report but make sure the entire balance from the previous month has been paid off. You don't earn extra FICO points for paying interest.

i know i gain nothing from fico. my apr is 14.24%. just thinking to make the bank money once in a while. so they get something as well.

Re: Paying credit cards...

Anonymous — Thu, 17 May 2012 22:29:07 GMT

@appbar1114 wrote:
@aussiesareforever wrote:
@appbar1114 wrote:
So my new BoA statement came in yesterday and to my surprise I didn't pay any interest. Should I let a balance earn interest once in awhile? Or should I PIF before the next statement? And will PIF before the next statement/due date will I avoid interest?
You should never have to pay interest. You can let a balance report but make sure the entire balance from the previous month has been paid off. You don't earn extra FICO points for paying interest.
i know i gain nothing from fico. my apr is 14.24%. just thinking to make the bank money once in a while. so they get something as well.

I don't think it matters. They make money off transaction fees too. Paying interest doesn't necessarily keep you in their good graces either. My husband has been paying around $40 per month in just interest on a Sears card and they lowered his limits out of the blue, wouldn't surprise me if they closed it when he pays it off.

Re: Paying credit cards...

afbar1114 — Thu, 17 May 2012 22:50:12 GMT

OK thanks so as long as I PIF by the due date I avoid any interest

Re: Paying credit cards...

warpedlogic — Thu, 17 May 2012 22:54:23 GMT

@appbar1114 wrote:
OK thanks so as long as I PIF by the due date I avoid any interest

Generally. Look at your cards terms and conditions, which you agreed to when you activated the card. For my Cap One Secured card, if I all of a sudden don't PIF for one month, then I get charged back interest for all my previous statement amounts.

Re: Paying credit cards...

Anonymous — Thu, 17 May 2012 23:31:00 GMT

@warpedlogic wrote:
@appbar1114 wrote:
OK thanks so as long as I PIF by the due date I avoid any interest
Generally. Look at your cards terms and conditions, which you agreed to when you activated the card. For my Cap One Secured card, if I all of a sudden don't PIF for one month, then I get charged back interest for all my previous statement amounts.

NOT TRUE!

Re: Paying credit cards...

afbar1114 — Thu, 17 May 2012 23:47:28 GMT

So what should i do

Re: Paying credit cards...

warpedlogic — Fri, 18 May 2012 00:18:18 GMT

@Anonymous wrote:
@warpedlogic wrote:
@appbar1114 wrote:
OK thanks so as long as I PIF by the due date I avoid any interest
Generally. Look at your cards terms and conditions, which you agreed to when you activated the card. For my Cap One Secured card, if I all of a sudden don't PIF for one month, then I get charged back interest for all my previous statement amounts.
NOT TRUE!

From here...

How Can I Avoid Paying Interest Charges?
Each month you pay your “New Balance” in full by the due date, you will have a minimum grace period of 25 days with no interest charge on all new
1) purchases, 2) balance transfers, 3) special purchases and 4) other charges. If you have been paying your account in full with no interest charges applied
and you do not pay your next bill in full, prorated interest charges will be assessed. There is no grace period on cash advances, special transfers, or on any
new transaction when there is an unpaid balance from a previous bill.

If I misread, then I can accept that as I may have.

OP: If you PIF every month, you're fine.

Re: Paying credit cards...

afbar1114 — Fri, 18 May 2012 01:25:44 GMT

Ok thats capital one secured not any of my cards. To be exact i was asking about boa

Re: Paying credit cards...

android01 — Fri, 18 May 2012 01:43:03 GMT

@appbar1114 wrote:
So what should i do

NEVER look at your credit card as having "extra" cash. NEVER charge more than you can afford to pay unless it's an emergency. ALWAYS PIF and you will never pay interest.

Re: Paying credit cards...

BrokaToe — Fri, 18 May 2012 01:49:38 GMT

+1 Some very wise advice there...

Re: Paying credit cards...

Anonymous — Fri, 18 May 2012 04:02:24 GMT

Just PIF monthly. Or even easier just set it up for autopsy, full amount due.

Re: Paying credit cards...

clocktick — Fri, 18 May 2012 04:09:53 GMT

@appbar1114 wrote:
i know i gain nothing from fico. my apr is 14.24%. just thinking to make the bank money once in a while. so they get something as well.

You do not need to make the bank money...ever. You do not need to do them any favors like that! For highest FICO with reports from here, let 1-9% report on statement but then pay in full = never paying interest. Believe me, the banks have money.